ABSTRACT
In Chapter 2, we presented one dimensional single deterministic dynamical systems. In particular, we have presented invariant measures of piecewise expanding maps on [0,1]. In this chapter, we present random dynamical systems with some applications in finance. We present special classes of random dynamical systems which are known as random maps or iterated function systems. We closely follow [1, 8, 10, 19, 20, 25, 26, 32, 34] and the references therein. We focus our special attention on the existence and properties of invariant measures. We also present some applications in finance using random maps with constant probabilities.
